List two types of external environment in the business

Answer 1

Two types of external environments in business are:

1. Micro Environment: This includes the immediate external factors that directly impact a business's operations and performance. Key components of the micro environment include customers, suppliers, competitors, and intermediaries. These factors can directly influence a company's ability to serve its customers and compete effectively.

2. Macro Environment: This encompasses broader societal forces that can impact an organization and its ability to conduct business. The macro environment includes factors such as economic conditions, political and legal regulations, technological advancements, social and cultural trends, and environmental issues. These factors are generally less controllable by a business but can significantly affect its strategic decisions and long-term viability.